Post Utme Mountain Top University 2025 Accounting Question 3

Practice objective / multiple choice question 3 from the 2025 Post Utme Mountain Top University Accounting examination.

Post Utme Mountain Top University 2025 Accounting Objective / Multiple Choice
Question 3 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2025 • ACCOUNTING • objective

A company's balance sheet shows a current ratio of 2:1. If the company's current assets are ₦100,000 and its current liabilities are ₦50,000, what is the correct interpretation of this ratio?

Answer Options

Correct Answer A. The company has sufficient liquidity to meet its short-term obligations.
B. The company has insufficient liquidity to meet its short-term obligations.
C. The company has a moderate level of liquidity.
D. The company has a high level of liquidity.
Correct Answer
A
Correct Option:
The company has sufficient liquidity to meet its short-term obligations.

About This Question

This is Post Utme Mountain Top University 2025 Accounting Question 3. It is one of the objective questions from the 2025 Post Utme Mountain Top University Accounting examination.

View More Post Utme Mountain Top University 2025 Accounting Questions More Post Utme Mountain Top University Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support